Essential Things to Consider before Choosing  a Financial Advisor

You might need the help of a financial advisor. That’s pretty obvious. However, you have to consider some very important things before you decide to hire one.

Promises and Expectations

If a financial advisor promises you anything more than they will do their best, you probably should Finance Brokerage Cryptocurrencies double back and find another one.

An advisor needs to explain how he or she will invest for you, but no advisor should promise, or even imply, specific results. Markets are always more powerful than advisors and money managers. If something sounds too good to be true, it probably is.

If the advisor offers historical investment results, understand those results may be largely meaningless and are normally based on numbers that are more hypothetical instead of actual. In any case, the future will be different from the past.

You should ask Finance Brokerage Education how the advisor will handle certain risks and opportunities in the future and how often they adjust portfolios as markets and economies change.


If a strategy is too complicated for you to understand  or the advisor can’t explain it in understandable terms and specifically, turn around and look for another one.

The more complex the strategy, the less likely the advisor understands it or can control it when markets do the unexpected. There are very few rocket scientists in the world and most of them are busy tinkering with rockets.

An advisor should possess the ability to consider buying any asset and security  types, not just their company-sponsored securities. They must always understand what the ramifications may be when they invest for you.

If they don’t fully understand a security, which may be reasonable because of the amount of possibilities today, they likely shouldn’t invest in it.

There’s really no guaranteed results, but the strategy must be understood by everybody.


In general, investment advisors are paid an annual fee (some small percentage based on assets managed) for managing your investment portfolio. Their incentives are generally aligned with yours to keep your assets safe and growing. They may also serve to solve financial issues for you and work with other trusted advisors like attorneys and CPAs for your benefit.

A financial advisor may sell products or securities and earn commissions for doing so. He or she may also get paid for managing  your investment portfolios. Neither type of advisors is better than the other. On the other hand, you must understand the differences because they affect the incentives for your advisor, which may affect the risks and returns in your portfolio.

Paying an investment advisor for service means that if you are unhappy with the service or the investing results, you can find someone else who you think will do better for you. That is as it should be. Unfortunately, many sales product like annuities and structured products charge big, built-in, upfront fees, and lock you in for extended periods.


Check if the advisor spends many hours managing investment portfolios and solving financial issues for clients. Or does the advisor spend most of the day trying to find new clients?

Every advisor searches for new clients where there may be a mutual benefit. That’s pretty okay. However, if your advisor isn’t directly responsible for managing your assets on a daily basis, are you sure you know who is?